Examining Cavs' Salary Cap, Decisions for 2024 NBA Free Agency After Playoff Loss

Though the Cleveland Cavaliers sputtered a bit down the stretch, largely due to injuries, they still had what should be considered a successful season. No, the Cavs didn't emerge as the playoff powerhouse they were in the last LeBron James era, but they gelled into a squad capable of beating any opponent on any given night.

Cleveland has gotten to this point through some sound drafting and, of course, the 2022 trade for standout guard Donovan Mitchell.

While Mitchell may be the centerpiece, prospects-turned-stars like Darius Garland and Evan Mobley have helped make Cleveland a formidable young team. The Cavs have a very strong foundation, but if they're going to continue trending upward, head coach J.B. Bickerstaff and Mike Gansey have some work ahead of them.

Now that Cleveland's postseason run is over, let's dive into what's in store for the 2024 offseason. Here, we'll examine the Cavaliers' salary cap outlook, top impending contract decisions and some potential top targets for 2024 free agency.

The Cavaliers are set to have 11 players under contract for the 2024-25 season, a group that includes Mitchell, Garland, Mobley, Jarrett Allen and Max Strus. Tristan Thompson, Damian Jones and Marcus Morris Sr. are Cleveland's only impending unrestricted free agents.

2020 fifth overall pick Isaac Okoro is set to be a restricted free agent.

With the key core under contract, the Cavaliers are facing a practical cap deficit of $48.2 million. However, they're in far better shape than some NBA franchises and will be $30.5 million below the luxury tax second apron as constructed.

Staying below the second apron is important because of trade restrictions imposed via the new collective bargaining agreement. Beginning this offseason, teams over the second apron won't be able to aggregate contracts to trade for a single player, send out cash in trades, use trade exceptions from previous years, or take back more salary than they send in a trade.

Cleveland is also $13.5 million below the luxury tax line, a threshold it may consider crossing in free agency. And while the Cavs may not be heavy players on the trade market, being well below the second apron at least gives them options.

Ideally, the Cavs will manage to retain Okoro. His defense and improved shooting aided Cleveland tremendously during the season. While he missed some time due to injury, he has long-term value as a perimeter defender.

Okoro is eligible for an $11.8 million qualifying offer. However, at least one general manager believes that Okoro could see around $14 million annually, according to Michael Scotto of HoopsHype.

While Okoro will be a priority this offseason, Cleveland's biggest decision will involve Mitchell. The five-time All-Star is under contract through next season with a player option for the 2025-26 campaign. However, he'll also be eligible for a four-year extension in the $200 million range this summer.

Cleveland seems confident that Mitchell will re-up with the franchise.

"We think he will extend. I think if you listen to him talk, he loves the city," franchise owner Dan Gilbert said, per Larry Lage of the Associated Press.

However, the 27-year-old has chosen not to speak about his contract publicly.

"I mean obviously you have to ask the question, but my focus is I got a lot of things to focus on outside of that right now," Mitchell said, per Joe Vardon of The Athletic.

Really, this feels like more of a decision for Mitchell to make because it's hard to envision the Cavs not wanting to lock him up this offseason. If he chooses to play out his contract and reassess in 2025, though, Gansey may have to start weighing the value of an extension against the potential return of a trade.

Even on an expiring contract, Mitchell would net the Cavs valuable player and/or draft capital. Obviously, the preference will be to simply keep Mitchell in the fold.

Cleveland's free-agent options will very much hinge on whether they enter luxury tax territory. Doing so would limit them to the taxpayer's mid-level exception. We're highly unlikely to see the Cavs go big-name hunting this offseason, unless they flip the switch on a Mitchell trade.

As far as mid-level and veteran minimum targets go, Cleveland will have some options. Phoenix Suns forward Royce O'Neale would be a logical top target. O'Neale played alongside Mitchell with the Utah Jazz, and the two remain friends.

O'Neale's combination of defense and three-point shooting would also fit with the Cav's scheme.

According to NBA insider Marc Stein, the Cavaliers were interested in O'Neale at the trade deadline before he was sent to Phoenix by the Brooklyn Nets.

"One veteran team executive read my Sunday piece that wondered aloud about the Cavaliers pursuing a trade for Brooklyn's Royce O'Neale and relayed that Cleveland indeed has O'Neale on its list of targets," Stein wrote in January (h/t Matt John of Heavy).

O'Neale earned a base salary of $9.5 million last season, but he'll turn 31 in June and could be open to a more team-friendly deal if it means reuniting with Mitchell—and adding the former could make an extension more attractive to the latter.

Los Angeles Lakers forward Taurean Prince is another 3-and-D specialist who could interest Cleveland as a bench option.

Free agent guard Furkan Korkmaz, who was waived by the Indiana Pacers in February, might also interest the Cavs. According to Chris Fedor of Cleveland.com, they've "monitored" Korkmaz "for years."

Cleveland probably won't generate many headlines this offseason, but it doesn't have to. If Mitchell and Okoro are both back, the Cavs will largely be seeking role players and bench contributors.

*Cap and contract information via Spotrac.